Broadridge Financial Solutions Conference Summary Company Overview - Broadridge Financial Solutions is a leading provider of technology infrastructure in the financial services industry with a market cap of approximately $28 billion and annual fee revenue of $4.5 billion [3][4] - The company serves clients primarily in wealth management, asset management, capital markets, and corporate issuers, including 28 of the 29 globally systemic important banks [4] Core Business Segments - The Investor Communication Solutions (ICS) unit connects corporate issuers to investors through banks and advisors, facilitating a unique network [5] - The Global Technology Operations (GTO) business includes capital markets and wealth management services, providing front, middle, and back office systems [6][7] Growth Plans - Broadridge's growth strategy focuses on three areas: governance franchise, capital markets, and wealth management modernization [8][9] - The governance franchise aims to democratize and digitize governance, with mid-teens position growth in equities and mid-single digits in funds for FY25 [11][12] - Capital markets are being simplified and innovated, with a focus on AI and new technologies like Bond GPT [13][14] - Wealth management is being modernized through modular solutions, allowing firms to upgrade their back office capabilities [15] Financial Performance - Over the last decade, Broadridge has achieved 10% recurring revenue growth and 13% adjusted EPS growth, with dividends growing in line with earnings [16][17] - The company targets 5-8% organic revenue growth and 8-12% EPS growth over the next three years [17] Market Trends - The democratization of investing is driving position growth, with more investors entering the market and increasing the number of positions per investor [22][23] - Position growth has been in the high single digits over the last decade, with expectations for continued positive trends [25][26] Digital Transformation - Broadridge is actively investing in digital communications, with 85-90% of regulatory communications already suppressed digitally [32] - The customer communications business, valued at $700 million, is transitioning from 85% print to a growing digital segment [38][40] Revenue Streams - Recurring revenue is defined as revenue under contract for multiple years, while event-driven revenue is one-time or sporadic [46][47] - Distribution revenue, primarily from physical output, is expected to grow in the medium term but will likely dissipate in the long term as digital strategies are executed [50][51] Demand and Market Conditions - Demand for solutions related to cost efficiency remains strong, with clients seeking to reduce operational costs [55] - Market volatility has historically not negatively impacted position growth, with strong defensibility observed since 2007 [59][61] Competitive Landscape - Broadridge holds a significant share in the proxy business, with competitors like Proxy Trust and Mediant [66] - The company is exploring growth opportunities in the global proxy business as international investors increasingly buy US securities [66] Regulatory Environment - Current regulations, including potential digital asset disclosures and proxy reforms, are seen as opportunities for Broadridge [68][69] - The company has developed a disclosure solution for digital assets called Clarify [68] Capital Allocation Strategy - Broadridge prioritizes internal growth investments, dividends, tuck-in M&A opportunities, and share buybacks while maintaining an investment-grade credit rating [75][76]

Financial Data and Key Metrics Changes - Broadridge has a market cap of $28 billion and aims for organic revenue growth of 5% to 8% and earnings growth of 8% to 12% over three years, with a target of low double-digit returns over the long term [3][5][6] - The company reported $1.5 billion in fee revenue from its Global Technology and Operations (GTO) segment, with a total addressable market of approximately $36 billion [15][17] Business Line Data and Key Metrics Changes - In corporate governance, Broadridge managed 900 million equity positions in the past year, reflecting significant growth [4][9] - The GTO segment has historically been back-office focused but is now expanding into front and middle office solutions, with strong positions in North America [16][19] - The wealth management segment is seeing growth through a $1 billion investment in a modern platform co-developed with UBS, which is now being implemented with multiple clients [20][21][76] Market Data and Key Metrics Changes - The democratization of investing has increased the percentage of adults in the U.S. holding equities from 40% to 60%, driving position growth for Broadridge [9][10] - The company is experiencing increased demand for digital communications and data analytics solutions, reflecting broader trends in the financial services industry [32][34] Company Strategy and Development Direction - Broadridge is focusing on digitization, moving communications from paper to digital formats, and enhancing investor engagement through innovative platforms [10][11] - The company is transitioning to a platform-oriented model, integrating solutions across asset classes to provide more value to clients [12][13] - Investments in AI and data analytics are seen as key to enhancing product offerings and operational efficiency [14][54] Management's Comments on Operating Environment and Future Outlook - Management acknowledged current macroeconomic uncertainties but emphasized that long-term growth dynamics remain intact [41][46] - The company is positioned to help clients navigate regulatory changes and technological advancements, viewing these as both risks and opportunities [70][72] Other Important Information - Broadridge has made approximately 45 acquisitions over the last ten years, focusing on smaller, high-return investments [24][25] - The company maintains a balanced capital allocation strategy, prioritizing internal investments, dividends, and strategic acquisitions [66][67] Q&A Session Summary Question: Can you elaborate on the current sales outlook given macro uncertainties? - Management lowered the sales outlook for FY25 but confirmed that long-term growth dynamics are still intact, with a focus on organic growth from governance and communications [41][42] Question: What are the top two risks for the company? - Regulatory changes and technology evolution are viewed as risks that can also present opportunities for Broadridge to assist clients [70][72] Question: How has the company evolved over the last five years? - The governance business has scaled significantly, with 70% more positions managed compared to five years ago, and the company has expanded its capital markets and wealth management capabilities [74][75]